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8-K - FORM 8-K - CREDIT ACCEPTANCE CORP | k49454e8vk.htm |
Silver Triangle Building
25505 West Twelve Mile Road
Southfield, MI 48034-8339
(248) 353-2700
creditacceptance.com
25505 West Twelve Mile Road
Southfield, MI 48034-8339
(248) 353-2700
creditacceptance.com
NEWS RELEASE
FOR IMMEDIATE RELEASE
Date: July 23, 2010
Investor Relations: Douglas W. Busk
Senior Vice President and Treasurer
(248) 353-2700 Ext. 4432
IR@creditacceptance.com
Senior Vice President and Treasurer
(248) 353-2700 Ext. 4432
IR@creditacceptance.com
NASDAQ Symbol: CACC
CREDIT ACCEPTANCE CORPORATION ANNOUNCES
FINAL RESULTS OF ITS TENDER OFFER
FINAL RESULTS OF ITS TENDER OFFER
Southfield, Michigan July 23, 2010 Credit Acceptance Corporation (NASDAQ: CACC) (referred to
as the Company, we, our, or us) announced the final results of our tender offer, which
expired at 5:00 p.m., New York City time, on July 19, 2010. We commenced the tender offer on June
18, 2010 to purchase up to 4,000,000 shares of our outstanding common stock at a price of $50.00
per share, net to the seller in cash, without interest. Based on the final count by Computershare
Trust Company, N.A., the depositary for the tender offer, 20,956,355 shares of common stock were
properly tendered and not properly withdrawn. Because more than the maximum 4,000,000 shares were
tendered, we have accepted for purchase only a prorated portion of the shares tendered by each
tendering shareholder, other than odd lot shareholders, as described in our Offer to Purchase. The
proration factor used by us in accepting for purchase tendered shares was 18.9%.
We will promptly pay for 4,000,000 tendered shares of our common stock at a price of $50.00 per
share, net to the seller in cash, without interest, at a total cost of $200.0 million, which
includes 2,921,320 shares tendered by Donald A. Foss, our Chairman of the Board and 756,854 shares
tendered by the trustee of certain grantor retained annuity trusts created by Mr. Foss. We are
financing the purchase of our securities in the tender offer by borrowing under our $325.0 million
revolving secured warehouse facility and our $170.0 million revolving secured line of credit
facility.
As a result of the completion of the tender offer, we have approximately 27.4 million shares of
common stock outstanding. Georgeson, Inc. was the information agent for the tender offer.
Description of Credit Acceptance Corporation
Since 1972, Credit Acceptance has provided auto loans to consumers, regardless of their credit
history. Our product is offered through a nationwide network of automobile dealers who benefit
from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and
referral sales generated by these same customers; and from sales to customers responding to
advertisements for our product, but who actually end up qualifying for traditional financing.
Without our product, consumers are often unable to purchase a vehicle or they purchase an
unreliable one. Further, as we report to the three national credit reporting agencies, an
important ancillary benefit of our program is that we provide a significant number of our consumers
with an opportunity to improve their lives by improving their credit score and move on to more
traditional sources of financing. Credit Acceptance is publicly traded on the NASDAQ under the
symbol CACC. For more information, visit creditacceptance.com.